For his second "Executive Decision" segment of Thursday's Mad Money program, host Jim Cramer spoke with Mark Tritton, CEO of Bed Bath & Beyond (BBBY) , which delivered disappointing quarterly results.
Tritton admitted that Bed Bath lost about $100 million in sales during the quarter due to inventory and supply-chain issues. He also acknowledged one of the "true assets" of his company, the BuyBuyBaby chain, is on track to deliver $1.3 billion in sales.
Tritton was upbeat on the company's remodeling efforts, saying the plan to refresh 400 stores over three years remains on track with 80 completed thus far.
Let's check on the charts and indicators to see if they need "refreshing."
In the daily bar chart of BBBY, below, we can see that the shares have been in a longer-term downtrend and Thursday's outside day and higher close does very little to improve the picture. Prices are trading below the declining 200-day moving average line and below the flat 50-day line.
The On-Balance-Volume (OBV) line has been stagnant for the past year. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of BBBY, below, we cannot see any promising developments. Prices are trading in a downtrend below the declining 40-week moving average line.
The weekly OBV line has "rolled over" the past several months. The MACD oscillator is bearish.
In this daily Point and Figure chart of BBBY, below, we can see that prices reached and exceeded a downside price target of $17.
In this weekly Point and Figure chart of BBBY, below, a downside price target of $15 has been reached and exceeded. A long repair process is needed to turn this chart bullish.
Bottom-line strategy: We did not feel confident recommending BBBY way back in June and we still do not find the charts compelling. It's cold outside so stay under the covers and continue to avoid the long side of BBBY.
